EXCLUSIVE Star Residence Invest, the first REIT established in Romania, wants to make a capital increase of about 19 million lei

impact, star residence invest Sursă foto: Impact SA

Star Residence Invest, the first REIT – a company that invests in apartments and then rents them out, and in which anyone can invest, wants to raise capital by selling up to 96.1 million shares. The capital increase will be carried out in two phases, at a price of 0.2 lei per share for the first phase and 0.218 lei for the second, and could reach 19.2 million lei.

The company has a portfolio of 12 4-room apartments with a built area of 124 sqm, 2 3-room apartments with a built area of 95 sqm and 26 parking spaces, located in the Greenfield Băneasa residential district.

The assets are subject to a lease agreement from November 2020, for a period of 5 years, at a gross yield of 11%/year.

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The increase in the company’s share capital of RON 19.2 million will be done through the issue of 96,100,000 new shares with a nominal value of RON 0.2 each, with cash contribution. Thus, the share capital of the company will be increased from the amount of RON 9.6 million, i.e. 48 million shares, to a maximum of RON 28.83 million, i.e. a maximum of 144.15 million shares.

Currently, the main shareholder is BRK Financial Group of Cluj Napoca, with 23.9% of the shares, followed by the developer Impact SA, which founded the REIT, with 22.3%, Ion-Gheorghe Manea with 13.1% and other shareholders with 40%.

Star Residence Invest’s apartment portfolio is likely to increase by several dozen apartments following the capital increase planned by company officials.

According to the prospectus, the shares remaining unsubscribed after their offering in the second stage of the private placement will be cancelled by the decision of the sole administrator of the company, which will confirm the results of the share capital increase and approve the amendment of the Articles of Association, which will refer to the shares actually subscribed in the two stages of the increase.

Edited for English

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